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01 / 05
Does the Free Market Help or Hurt Women?

Blog Post | Health & Medical Care

Does the Free Market Help or Hurt Women?

Capitalism has given women around the world better lives and greater freedom.

Does capitalism help or hurt women? A fascinating book from Cambridge University Press, Capitalism, For and Against: a Feminist Debate, seeks to answer that question. 

Philosophy professors Ann Cudd of Boston University and Nancy Holmstrom of Rutgers University both want more freedom and higher material living standards for women. But they disagree on how to achieve that goal. 

One thinks capitalism is the answer; the other socialism. Their differences boil down to two points: how capitalism has affected women to date, and the viability of alternative systems to improve a woman’s lot. 

The professors may disagree – yet the data sides overwhelmingly with capitalism.

When it comes to material living standards, Cudd presents page after page of evidence to demonstrate “that capitalism has brought about a massive improvement in life for human beings” by reducing poverty and spurring technological innovations in, for example, healthcare. Death in infancy or childbirth is much rarer that it once was. Family sizes are smaller, since children generally survive into adulthood. And women’s options have multiplied as a result. 

Holmstrom, however, claims that capitalism has lessened women’s material well-being; it has, she says, exacerbated inequality, which she conflates with poverty. Cudd counters that those who care about women’s welfare should focus on poverty, which is at a historic low. 

But giving women the freedom to flee rural penury in order to work in factories, counters Holmstrum, has made them worse off. “The lives of subsistence peasants may be limited, but materially adequate and stable,” she writes. She thinks factory jobs “seldom provide a way out of poverty”. 

Cudd answers that the world’s poorest people are overwhelmingly rural, performing informal subsistence agricultural labour: “Global capitalism has not changed their lives very much; they live much as their ancestors did.”

As the data shows, factory work has, indeed, helped women escape both poverty and the stricter gender roles of rural areas. And while Holmstrom implies that the world’s poor prefer agricultural drudgery to urban work, the ongoing global migration from rural areas to cities provides evidence to the contrary. 

Capitalism, says Cudd, has not just liberated women from the fields but helped society to see them as individuals. It promotes not only material progress, but also social innovation, which has helped break down those old prejudices such as sexism. “Capitalism derives its primary justification from the maximisation of individual liberty,” she says, “and capitalist societies promulgate the ideology of individualism, which helps to break down … sexist norms and practices.”

Indeed, the capitalist worldview subverts sexism and other forms of collective prejudice – just look at how it eroded India’s caste system.

“Capitalism reduces the oppression of traditional societies that impose hierarchies of gender and caste,” writes Cudd, because embedded within market exchange itself is the idea that each individual should be free to pursue her self-interest. Market participation also increases women’s bargaining power within society, empowering them to lobby for legal equality and greater freedom. 

Holmstrom, on the other hand, defines freedom as negative liberty (freedom from interference) and what some philosophers call positive liberty (the means to act). To be free, Holmstrom contends, a woman needs adequate material resources and an environment of social tolerance. 

But capitalism has actually increased freedom as Holmstrom conceives it – by reducing poverty and encouraging social tolerance. As the philosopher Jason Brennan noted, “as a matter of historical fact, protecting negative liberties is the most important and effective way of promoting positive liberty”. 

Holmstrom is resistant to this view, observing that some capitalist states deny their citizens freedom outside the economic realm. But then, aren’t dictatorships that at least allow their citizens economic freedom (Chile under Pinochet) better than anti-capitalist dictatorships (modern Venezuela)? After all, capitalism fosters the conditions for people to escape poverty and ultimately demand more personal and political freedoms. 

The debate is complicated by the fact that the professors disagree over how to define a capitalist state. For example, Cudd and Holmstrom both denote Sweden and similar states with high social spending as capitalist, but Cudd does not count oligarchic states such as Saudi Arabia as such. And Holmstrom insists that the exclusion of such states makes for a biased “persuasive definition” of capitalism.Yet Holmstrom does not want to count any past socialist system as truly socialist – which in turn shows her bias. 

Cudd notes that capitalism compares favourably on practically every indicator of human wellbeing to the socialism practised by the Soviet Union, Maoist China, and Cuba today. Holmstrom, bizarrely, alleges that the Soviet and Maoist systems helped women, and praises the Soviet Union for offering “free” childcare and laundry services. 

One might respond that if a woman resorts to cannibalising her own children to survive a manmade famine (as thousands did while millions of others died starving), endures rape in a gulag (“rape was so common as to be considered routine”), or faces execution for political dissent, then laundry services do not meaningfully improve her situation. 

While Holmstrom thinks those states helped women, she believes no society has ever truly given “the people” (rather than a bureaucracy) control over the means of production. She does admit she is comparing capitalism to an imagined ideal of socialism. And anticipating charges of Utopianism, she points out that many major social changes such as women’s suffrage once seemed unreachable. 

Yet ultimately, she offers little in the way of evidence that her vision wouldn’t fail like all of the other socialist experiments throughout history. There, is after all, ample data on where that road leads – and it is hardly a paradise for workers, women or anyone else.

This first appeared in CapX. 

World Bank | Quality of Government

Côte D’Ivoire’s Land Reforms Are Unlocking Jobs and Growth

“Secure land tenure transforms dormant assets into active capital—unlocking access to credit, encouraging investment, and spurring entrepreneurship. These are the building blocks of job creation and economic growth.

When landowners have secure property rights, they invest more in their land. Existing data shows that with secure property rights, agricultural output increases by 40% on average. Efficient land rental markets also significantly boost productivity, with up to 60% productivity gains and 25% welfare improvements for tenants…

Building on a long-term partnership with the World Bank, the Government of Côte d’Ivoire has dramatically accelerated delivery of formal land records to customary landholders in rural areas by implementing legal, regulatory, and institutional reforms and digitizing the customary rural land registration process, which is led by the Rural Land Agency (Agence Foncière Rurale – AFOR).

This has enabled a five-fold increase in the number of land certificates delivered in just five years compared to the previous 20 years.”

From World Bank.

UNICEF | Child Labor

100 Million Fewer Children Are in Child Labour Today than in 2000

“While the elimination of child labour remains an unfinished task, the latest global estimates bring some welcome news. After a concerning rise in child labour captured by the global estimates for 2020, a feared further deterioration in the wake of the COVID-19 pandemic has not materialized, and the world has succeeded in returning to a path of progress. There are over 100 million fewer children in child labour today than in 2000, even as the child population increased by 230 million over the same period.”

From UNICEF.

Blog Post | Manufacturing

Grim Old Days: Virginia Postrel’s Fabric of Civilization

Beneath today’s abundance of clothing lies a long and brutal history.

Summary: Virginia Postrel’s book weaves a sweeping history of textiles as both drivers of innovation and toil. From ancient women spinning for months to make a single garment to brutal sumptuary laws and dye trades steeped in labor and odor, it is revealed how fabric shaped the foundations of human society.


Virginia Postrel’s The Fabric of Civilization: How Textiles Made the World is the riveting story of how humanity’s quest for thread, cloth, and clothing built modern civilization, by motivating achievements from the Neolithic Revolution to the Industrial Revolution and more. While much of the book contains inspiring tales of innovation, artistry, and entrepreneurship, the parts of the book about the preindustrial era also reveal some dark and disturbing facts about the past.

In the preindustrial era, clothing was often painstakingly produced at home. Postrel estimates that, in Roman times, it took a woman about 909 hours—or 114 days, almost 4 months—to spin enough wool into yarn for a single toga. With the later invention of the spinning wheel, the time needed to produce yarn for a similarly sized garment dropped to around 440 hours, or 50 days. Even in the 18th century, on the eve of industrialization, Yorkshire wool spinners using the most advanced treadle spinning wheels of the time would have needed 14 days to produce enough yarn for a single pair of trousers. Today, by contrast, spinning is almost entirely automated, with a single worker overseeing machines that are able to produce 75,000 pounds of yarn a year—enough to knit 18 million T-shirts.

Most preindustrial women devoted enormous amounts of time to producing thread, which they learned how to make during childhood. It is not an exaggeration to say, as Postrel does, “Most preindustrial women spent their lives spinning.” This was true across much of the world. Consider Mesoamerica:

At only four years old, an Aztec girl was introduced to spinning tools. By age six, she was making her first yarn. If she slacked off or spun poorly, her mother punished her by pricking her wrists with thorns, beating her with a stick, or forcing her to inhale chili smoke.

These girls often multitasked while spinning: “preindustrial spinners could work while minding children or tending flocks, gossiping or shopping, or waiting for a pot to boil.” The near-constant nature of the task meant that prior to the Industrial Revolution, “industry’s visual representation was a woman spinning thread: diligent, productive, and absolutely essential” to the functioning of society, and from antiquity onward cloth-making was viewed as a key feminine virtue. Ancient Greek pottery portrays spinning “as both the signature activity of the good housewife and something prostitutes do between clients,” showing that women of different social classes were bound to spend much of their lives engaged in this task.

Women of every background worked day and night, but still, their efforts were never enough. “Throughout most of human history, producing enough yarn to make cloth was so time-consuming that this essential raw material was always in short supply.”

Having sufficient spun yarn or thread was only the beginning; it still had to be transformed into cloth. “It took three days of steady work to weave a single bolt of silk, about thirteen yards long, enough to outfit two women in blouses and trousers,” although silk-weavers themselves could rarely afford to wear silk. According to Postrel, a Chinese poem from the year 1145, paired with a painting of a modestly dressed, barefoot peasant weaving silk, suggests that “the couple in damask silk . . . should think of the one who wears coarse hemp.”

Subdued colors often defined the clothing of the masses. “‘Any weed can be a dye,’ fifteenth-century Florentine dyers used to say. But that’s only if you want yellows, browns, or grays—the colors yielded by the flavonoids and tannins common in shrubs and trees.” Other dye colors were harder to produce.

In antiquity, Tyrian purple was a dye derived from crushed sea snails, and the notoriously laborious and foul-smelling production process made it expensive. As a result, it became a status symbol, despite the repulsive stench that clung to the fabric it colored. In fact, according to Postrel, the poet Martial included “a fleece twice drenched in Tyrian dye” in a list of offensive odors, with a joke that a wealthy woman wore the reeking color to conceal her own body odor. The fetor became a status symbol. “Even the purple’s notorious stench conveyed prestige, because it proved the shade was the real thing, not an imitation fashioned from cheaper plant dyes.” The color itself was not purple, despite the name, but a dark hue similar to the color of dried blood. Later, during the Renaissance, Italian dyers yielded a bright red from crushed cochineal insects imported from the Americas, as well as other colors that were created by using acidic bran water that was said to smell “like vomit.”

Numerous laws strictly regulated what people were allowed to wear. Italian city-states issued more than 300 sumptuary laws between 1300 and 1500, motivated in part by revenue-hungry governments’ appetite for fines. For example, in the early 1320s, Florence forbade women from owning more than four outfits that were considered presentable enough to wear outside. Postrel quotes the Florentine sumptuary law official Franco Sacchetti as writing that women often ignored the rules and argued with officials until the latter gave up on enforcement; he ends his exasperated account with the saying, “What woman wants the Lord wants, and what the Lord wants comes to pass.” But enough fines were collected to motivate officials to enact ever more restrictions.

In Ming Dynasty China, punishment for dressing above one’s station could include corporal punishment or penal servitude. Yet, as in Florence, and seemingly nearly everywhere that sumptuary laws were imposed, such regulations were routinely flouted, with violators willing to risk punishment or fines. In France in 1726, the authorities harshened the penalty for trafficking certain restricted cotton fabrics, which were made illegal in 1686, to include the death penalty. The French law was not a traditional sumptuary law, but an economic protectionist measure intended to insulate the domestic cloth industry from foreign competition. Postrel quotes the French economist André Morellet lamenting the barbarity of this rule, writing in 1758,

Is it not strange that an otherwise respectable order of citizens solicits terrible punishments such as death and the galleys against Frenchmen, and does so for reasons of commercial interest? Will our descendants be able to believe that our nation was truly as enlightened and civilized as we now like to say when they read that in the middle of the eighteenth century a man in France was hanged for buying [banned cloth] to sell in Grenoble for 58 [coins]?

Despite such disproportionate punishments, the textile-smuggling trade continued.

Postrel’s book exposes the brutal realities woven into the history of textiles; stories not just of uplifting innovation, but of relentless toil, repression, and suffering. Her book fosters a deeper appreciation for the wide range of fabrics and clothes that we now take for granted, and it underscores the human resilience that made such abundance and choice possible.

Curiosities | Trade

The Real Story of the “China Shock”

“The total number of jobs remained largely stable in the U.S.—and even slightly increased—as people adapted to competition from Chinese trade. Trade-exposed places recovered after 2010, primarily by adding young-adult workers, foreign-born immigrants, women and the college-educated to service-sector jobs.

Lost in the alarm over jobs is that trade with China delivered substantial benefits to the U.S. economy. Most obvious are the lower prices Americans pay for everything from clothing and electronics to furniture. One study found that a 1 percentage point increase in imports from China led to about a 1.9% drop in consumer prices in the U.S. For every factory job lost to Chinese competition, American consumers in aggregate gained an estimated $411,000 in consumer welfare. This so-called Walmart effect disproportionately helped middle- and lower-income families, who spend a bigger share of their budget on the kinds of cheap goods China excels at producing.

U.S. businesses also reaped advantages. Manufacturers who use imported parts or materials benefited from cheaper inputs, making them more competitive globally. An American appliance company, for example, could buy low-cost Chinese components to lower its production costs, keep its product prices down and potentially hire more workers.”

From Wall Street Journal.